(Bloomberg) — The tech industry is set to head into 2024 with another wave of job cuts, building on the back of widespread layoffs last year.
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Nearly 32,000 tech workers are expected to lose their jobs so far in 2024, according to Layoffs.fyi, a startup that has been tracking job cuts in the industry since the pandemic.
Snap Inc. became the latest example, announcing on Monday that it was cutting about 10% of its workforce, or about 540 employees. Earlier this month, software company Okta Inc. said it would lay off 7% of its workforce to cut costs, affecting about 400 employees. The list is growing longer, including Amazon.com Inc., Salesforce Inc. and Meta Platform Inc. Like big tech employers are included.
Read more: Amazon, Google job cuts as early as 2024 shock Silicon Valley
This year, “tech companies are still trying to correct their over-hiring during the pandemic, given that both the high interest rate environment and the tech recession have lasted longer than initially expected,” Layoffs. fyi founder Roger Lee wrote in an email.
According to Lee, there have been two main waves of job cuts in recent years. The “initial Covid” spike from Q1 to Q2 2020, and the “interest rate hike” effect, which runs from Q2 2022. “This year’s layoffs are generally smaller and more targeted than the layoffs a year ago,” Lee said.
Although economic factors are the main reason for tech layoffs, Li said many companies are citing the artificial intelligence race as a factor as they shift resources to focus on AI talent. According to an analysis by CompTIA, which tracks employment trends in the tech industry, “Job postings in fields requiring artificial intelligence or AI skills have increased by nearly 2,000…”